STATE OF THE FIELD IN YOUTH ECONOMIC OPPORTUNITIES

Table of Contents
Chapter 1 Chapter 2 Chapter 3 Chapter 4 Chapter 5 Chapter 6 Chapter 7 Chapter 8
Chapter 9
Chapter 10 Chapter 11 Chapter 12 Chapter 13 Chapter 14 Chapter 15 Annexes
2012 State of the Field in Youth Economic Opportunities
9.5 The Financial Diaries Methodology can Contribute to Understanding How Young
People in Conflict-Affected Settings Manage their Finances; thus Facilitating Effective
YEO Program Design in Humanitarian Contexts
The International Rescue Committee (IRC) found gaps in the knowledge base relating to young people’s
financial behavior in humanitarian or conflict-affected settings. This is a critical group to study as institutions
that provide financial services may not exist. The IRC adapted the methodology detailed in Portfolios of the
Poor (www.portfoliosofthepoor.com) in order to learn how youth in rural and urban Northern Uganda
manage their finances. The study sought to explore different roles of financial and social capital, understand the
financial role of youth in a household context, and detect differences in gender and geography (urban versus
rural). Using local researchers, the methodology included: screening interviews with each respondent, in depth
enrollment interviews, repeated cash flow reconciliations, guided participant photography exercises, and indepth
qualitative interviews. The methodology is designed to understand daily financial management practices
and how those practices relate to young people’s financial and social capital.
9.5.1 Noteworthy Results: IRC’s Study of Youth Financial Management in
Northern Uganda
IRC’s study of financial behavior in Northern Uganda
focused on poor young people (83 percent of the
sample was living on less than $1 a day).
• Youth begin earning money at a young age, and
expected contributions increase significantly when
they leave school.
• These young people appear to be testing a wide
range of livelihood strategies in their transition to
adulthood and rely heavily on undesirable casual
work, because of its accessibility and reliability as an
income stream within local economies. Hardly any
of the youth are doing just one job; many need a
variety of sources of income.
• Young people are saving a significant share of
their earnings using almost exclusively informal
mechanisms. Photography research exercises
revealed that young people saved money in
suitcases, basins, or under the mattresses in their
house; many lost savings due to theft or fires.
• Participants in the study learned about financial
management by doing and by observing older
relatives. When it comes to seeking advice, they
have much more confidence in older relatives than
peers. Older female relatives frequently served as
“money guards” who held youth savings and helped
them think through spending.
• Youth considered banks to be safe places but were
frequently too far away to access or they required to
great an amount of money; while there were some
challenges with savings groups, they were generally
perceived to be a viable mechanism to accumulate
small amounts over time.
• Despite limited market opportunities and low levels
of education, these vulnerable youth are optimistic
about their financial futures, believing that farming
and running businesses will generate wealth.
• Rural youth saw farming cash crops and land
ownership as the key to financial stability. Urban
youth saw wealth as tied to business and salaried
jobs; they realized the importance of formal
education to get those jobs. Boys’ financial goals
included investing in businesses to get rich while
girls focused on building a safety net for the family.
Chapter 9: Monitoring, Evaluation,
& Impact Evaluation
123